REITs vs Limited Liability Companies: Knowing the Basics
Curious about investing in real estate to earn passive income? If you have been doing your research, you have most likely come across the two most popular options for real estate investment. Real Estate Investment Trusts (REITs) and Limited Liability Companies (LLCs) are the go-to choices for someone looking to earn passive income through investing. There are important similarities and differences between these types of investments, and we aim to guide you through these in this article.
What is a REIT?
Real Estate Investment Trusts are companies that invest in groups of properties that are...

K-1 Tax Forms: What's the Deal?
Whether you are an investing partner with us or another investment entity, you may be well acquainted with the Schedule K-1 form. This Internal Revenue Service tax document is important for partners to see their individual reports of earnings, losses, credits, and deductions from the fiscal year [1]. The reason we send you K-1 reports is because investors are subject to being taxed on their income from their partnership.
Arriving Late? Its Normal...

The Woodstock of Capitalism
This past May, I traveled to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder’s meeting for my 4th year in a row. Chairman Warren Buffett (87) and Vice Chairman Charlie Munger (94) were as witty and wise as always, and they masterfully answered investor’s questions for over six hours. I hope to have that kind of stamina and knowledge when I’m their age!
Every year, I compile my notes and commentary into a huge document that I find myself referring to constantly. As I have in the past, I want to share this knowledge with you. Don’t...

Measuring Up to Our Benchmark
As mentioned in our past investment letters to you, we have selected the Vanguard Real Estate Index Fund Admiral Shares (Ticker VGSLX)[1] as our benchmark for comparison on all investments going forward. We feel this is the most appropriate benchmark to compare our returns to.
Why the change now?
You might be asking this question right now. As with all things in my investment philosophy, the answer lies in something related to my hero, Warren Buffett. I recently went back and read all the Buffett Partnership, Ltd letters. As you may know, prior to his taking over of...

When it comes to determining the value of a particular investment, there’s a lot of industry jargon that gets mixed in. You might find yourself amid a sea of financial reports, earnings calls, and a lot of paperwork you don’t understand. This sort of information is intimidating to new investors and actually stops a lot of people from wading into the investment waters entirely.
Fortunately, value investing is much simpler than that. You can break down an investment to its most fundamental pieces with some honest questions.
You should understand your investments are thoroughly as possible. If something is unclear or doesn’t...

I’ve spoken before about crowdfunding and how we use it to make real estate deals, but I realized that I’ve never actually explained what crowdfunding is.
Crowdfunding is the concept of raising large sums of money by appealing to a large group of people. Typically this is done over the Internet in order to reach the size we need. In 2013, more than $5 billion was raised through various crowdfunding campaigns. It’s a powerful tool.
Crowdfunding is a spinoff of the fundraising industry. Depending on the type of organization, some fundraisers will seek smaller donations from large groups of people, rather than...

If you aren’t aware of him, Tony Robbins is my personal favorite life coach. He has written several books about finding happiness and achieving success. You’ve likely seen one or part of his infomercials or talk show appearances.
Among his other contributions, Tony has offered some powerful financial advice for the average person that’s worth summarizing here. His advice comes from interviewing some of the biggest financial minds in the world, like David Swensen Yale’s Endowment Investment Manager, the world’s richest investor Warren Buffet, Carl Icahn, and Vanguard founder Jack Bogle.
In his latest book Tony’s Robbins’ lays out seven steps to...

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Nothing herein should be regarded as investment advice or as a recommendation regarding any particular investment or course of action. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn.